Current through Register Vol. 18, September 20, 2024
(1) At least 60
days before the intended closure date of a consumer loan business, the licensee
shall provide the following to the department:
(a) a copy of a notification to all consumers
with outstanding loans containing:
(i) a
current outstanding loan balance including an itemization of unpaid principal,
accrued interest, and allowable fees;
(ii) notice of intended closure date of the
business which date shall not be sooner than 60 days from the date of mailing
the notice;
(iii) the licensee's
succession plan, e.g., sale or assignment of the loan, and the successor's
contact information and assumption letter;
(iv) any alternatives to the licensee's
succession plan that are available to the consumer;
(v) contact information for borrower use in
obtaining collateral/lien releases; and
(vi) the department's name, address, phone
number, and e-mail address where any complaints arising from the intended
closure may be filed;
(b) the name, physical address, mailing
address, e-mail address, and phone numbers of the licensee's post-closure,
designated custodian of the licensee's inactive loan files, and the physical
address where the records will be maintained for the period required under
32-5-307, MCA; and
(c) a report of active loans containing the
following information for each loan:
(i)
name, address, and loan number of all active borrowers;
(ii) loan origination date;
(iii) original principal amount of
loan;
(iv) current interest
rate;
(v) current principal
balance;
(vi) maturity date;
and
(vii) summary of special
provisions related to taxes and insurance reserves, funded maintenance
reserves, etc.
(2) The department may conduct a final
examination of the consumer loan business at the licensee's expense as provided
in 32-5-403, MCA, and ARM
2.59.308 before accepting the
surrender of license. The department may, in lieu of an examination, accept an
audit report prepared in accordance with generally accepted accounting
principles (GAAP) and/or United States generally accepted audit standards
(GAAS) by an independent auditor retained by the licensee for the disclosed
purpose of closing or selling the business, as applicable.
